A prominent Texas orthopedic surgeon will trade his scrubs for a prison uniform after being sentenced to 102 months behind bars for his part in a staggering $145 million healthcare fraud.
Dr. Michael Taba, 61, of McKinney, was also ordered to pay more than $13 million in restitution Tuesday, marking the end of a years-long investigation into a scheme that turned cheap skin creams into liquid gold through fraudulent government billing.
The case centered on a kickback loop where Taba accepted bribes from pharmacy owners in exchange for prescribing “medically unnecessary” compound medications. These prescriptions were targeted at injured federal workers covered by the Department of Labor’s Office of Workers’ Compensation Programs.
While the pharmacies—located in Fort Worth and Arlington—billed the government as much as $16,000 per container, trial evidence revealed the reality was far less sophisticated. The creams were often mixed in back rooms by untrained teenagers, costing the conspirators roughly $15 to produce.
“Dr. Michael Taba accepted bribes and kickbacks for writing thousands of prescriptions… putting illegal profits above patients’ safety,” said Inspector General Anthony P. D’Esposito of the U.S. Department of Labor. He noted that the scheme prioritized “wastefulness and greed” over the integrity of benefits programs meant for the vulnerable.
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Between 2014 and 2017, the pharmacies involved billed over $145 million to federal programs and private insurers, successfully pocketing more than $90 million. However, the financial cost wasn’t the only fallout. During the trial, patients testified that the expensive mixtures were not only ineffective but actually caused painful skin rashes and irritation.
The investigation was a massive joint effort involving the USPS, the VA, the Department of Labor, and the IRS.
“Money always leaves a trail,” remarked Acting Special Agent in Charge Rodrick Benton of the IRS Criminal Investigation’s Houston Field Office, noting that forensic accounting was key to untangling the complex web of payments.
Assistant Attorney General A. Tysen Duva emphasized that the sentence serves as a stern warning to medical professionals who might consider violating their oath for personal enrichment. “The Department is committed to protecting victims and combating fraud against the United States wherever it is found,” Duva stated.
Taba’s conviction in November 2023 included conspiracy to commit healthcare fraud and three specific counts of healthcare fraud. With his sentencing Tuesday, federal officials say they have sent a clear message: those who attempt to pilfer the nation’s medical systems will be forced out.
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